Impact of Employee Retention on Hilton Hotel Performance

This research project investigates the impact of employee retention on organizational performance within the hospitality industry, using Hilton Hotel as a case study. The project begins with an introduction outlining the importance of employee retention and its effect on a company's reputation and operational costs. It establishes the research problem, aims, objectives, and research questions, focusing on identifying the impact of employee retention, motivating factors, challenges of high employee turnover, and strategies for improvement. The methodology includes qualitative research, an inductive approach, and a descriptive research design, with data collected through questionnaires and secondary sources. The findings are presented thematically, analyzing responses from HR managers regarding the importance of employee retention, Hilton's control over retention rates, the benefits of attracting talented employees, the influence of retention on market reputation, customer satisfaction, and the challenges of employee turnover. The project concludes with interpretations, recommendations, and limitations, providing valuable insights into the critical role of employee retention in enhancing organizational performance and offering strategic solutions for the hospitality sector.

RESEARCH PROJECT

TABLE OF CONTENTS
TOPIC:.............................................................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Research project outline and specification............................................................................1
1.2 Factors that contribute to the process of research project and Justification..........................3
1.4 Research Methodology..........................................................................................................3
1.5. Gantt Chart with Timeline...................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
1.3. Critical review......................................................................................................................4
Theme 1: Importance of employee retention in the company. ..................................................4
Theme 2: Motivating factors in boosting the retention of employees at Hilton Hotel...............4
Theme 3: Challenges faced by Hilton Hotel by high employees turnover.................................5
Theme 4: Strategies for raising the employee retention in the hospitality industry...................5
CHAPTER 3: RESEARCH METHODOLOGIES..........................................................................6
2.1 Match the Resources efficient to research question..............................................................6
2.2 Undertaken the proposed research investigation...................................................................8
CHAPTER 4: Data Findings, Analysis and Discussion..................................................................9
2.3 Record and Collate the relevant data....................................................................................9
3.2 Interpretation.......................................................................................................................15
CHAPTER 5: CONCLUSION AND RECOMMENDATION & LIMITATIONS......................18
3.3 Recommendation and Justification and Limitations...........................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

TOPIC:
“To identify the impact of employee retention in raising the performance of the
organisation in hospitality industry. A case study on Hilton Hotel”.
CHAPTER 1: INTRODUCTION
1.1 Research project outline and specification.
Introduction
Employees are the key to success of all the organisation. Employee retentions is referred
to the techniques employed by the management in order top help the employees to stay with the
organisation for longer period of time. Employees retention strategies go a very long way in
motivating the employees so that they stick to the company for maximum time as well as
contribute effectively. It is very essential for the company to put efforts very sincerely in order to
ensure the learning and growth for the employees (Younge and Marx, 2016). If employees are
not satisfied with the company, than it is not possible to achieve the desire goals and objectives
of the organisation. For retention of employees, organisations used to put many efforts like
rewards and incentives system, training and development programmes so that they feel valued
for the organisation which in turn motivate them.
In this present research, researcher use systematic techniques and methods for identifying
the impact of employee retention in raising the performance of the organisation. Hilton hotel is
being chosen for assessment. It is one of the global brand of full service hotels and resorts.
Background of the Research
The present research is based on the importance of employee retention as well as its
impact on the performance of Hilton Hotel. It is fact that employee are the backbone of the
company, if employees are not satisfied and motivated it is not possible to gain competitive
advantages in the market. The impact of employee retention on the performance of the company
is critical because it directly affects the goodwill and reputation of the organisation. Further, high
labour turnover also raises the cost of operation which in turn decreases the profitability of the
company (Noe and et.al., 2017). Thus, this present research paper will identify the impact of
employee retention in raising the performance of Hilton hotel as well as provide further
improvement in controlling the high labour turnover rate.
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Statement of Research Problem
The present research is focusing on employee retention, its benefits, its impact as well as
it challenges. Further researcher will also provide some solution to the company for boosting
employee retention (Aguenza and Som, 2018). However, the problem or gap is that researcher
will not able to focus on other things of employee retention such as standards, frameworks and
other things which is also very essential but because of lack of time, issues and resources, scholar
will not able to focus on these things.
Aim and Objectives and Research Questions
Aim:
“To identify the impact of employee retention in raising the performance of the
organisation in hospitality industry. A case study on Hilton Hotel”.
Objectives:
 To identify the importance of employee retention in the company.
 To determine the motivating factors in boosting the retention of employees at Hilton
Hotel.
 To identify the challenges faced by high employees turnover.
 To provide strategies for raising the employee retention in the hospitality industry.
Research Question:
1. What are the importance of employee retention in the company?
2. What are the motivating factors in boosting the retention of employees at Hilton Hotel?
3. What are the challenges faced by Hilton Hotel in overcoming the issues of employees
turnover?
4. What are the strategies required for raising the employee retention in the hospitality
industry?
Purpose and Scope of the Study
The main purpose of the study is to identify the impact of employee retention on raising
the performance of the company. Another purpose is to identify the benefits and challenges faced
by organisation in employees retention.
The scope of this study is very broad as it is used in both academic and corporate sector.
Students who are persuading the studies related to management of human resources will find
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very beneficial from this research study. On the other hand, this research is could also be used by
the organisation for understanding the importance of employees retention.
1.2 Factors that contribute to the process of research project and Justification.
There are various factors that allows researcher to choose the topic employee retention.
These are easy availability of data as the information of employee retention, its benefits,
challenges and impact are easily available. Another factors which allows researcher to choose the
topic is the interest behind the topic as scholar is very interested in knowing the feelings and
emotions of employees working in the company.
1.4 Research Methodology
Research Methodology Applied in the Research
Research Methods/Type Qualitative
Research Approach Inductive
Research Design Descriptive
Sampling
Probabilistic in which Random Sampling
technique will be used. 20 HR managers of
Hilton Hotel
Data Collection Both Primary (Questionnaire) and Secondary
Data Analysis Qualitative in which Thematic Analysis
1.5. Gantt Chart with Timeline
Chapters
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Introduction
Literature review
Research
methodology
Data collection,
Analysis &
Interpretation
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Conclusion
CHAPTER 2: LITERATURE REVIEW
1.3. Critical review
Theme 1: Importance of employee retention in the company.
According to MANDHANYA, (2015) employees are the key to success for all types of
organisation irrespective to there size, scale and objectives. If employees are not there it is not
possible to reach desire goals and objectives of the company. Employee retentions is referred to
the techniques employed by the management in order top help the employees to stay with the
organisation for longer period of time. If employees are not motivated and satisfied, it will
directly influenced the quality of goods and services organisation is providing to customers that
automatically results in fever satisfaction of customers. However, Porter and Kramer, (2019) said
that, employee retention is important because hiring is not an easy process as HR managers have
to shortlists some individual from large pool of talents, conduct preliminary interviews and many
other task are required.
Rabbi and et.al., (2015) articulated that, when an employee resigns from the
organisation, it might be happen that they would join the competitors and this is not at all good
for the organisation. It is because employees tends to take all the current organisation policies,
strategies to other organisation. So, employee retention is also very important for the
organisation to remain competitive in the market place. In addition to this, employee retention is
also very as it positively affects the goodwill of the company. It is fact that goodwill and
reputation is more important than profit margins. However, Aruna and Anitha, (2015) said that,
employee retentions is also very essential for the company to retain the valuable and worth
employees. It is because each and every company required the talented and hard-working
workforce.
Theme 2: Motivating factors in boosting the retention of employees at Hilton Hotel
As per the findings of Ganesh, (2016) motivation is very important for the success of the
organisation as well as for retention of employees for long term. Motivation is the essence of the
organisation as it is very essential for gaining competitive advantage in the market. Respect,
dignity, salary, rewards, position, social culture and many others are the factors which boost the
motivation of employees. It is very essential because if organisation do not focus on employees
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motivation, it will increase the employee turnover along with the quality of work done by
workers. If quality is affects it will decrease the customers satisfaction which will automatically
influence the performance of the company in negative way. Kreeger and Smith, (2017) said that,
in service industries like hospitality, healthcare etc. motivation plays a critical role because if
employees are not motivated they do not provide optimum and desire services to customers and
services sector in totally depends on services quality rather than products.
Konar, Ali and Hussain, (2018) stressed on Abraham Maslow's motivational theory as it
is one of the best theory of motivation that includes all those factors which are very necessary for
motivating employees. In this theory there are five needs of employees which are physiological,
safety, social, Esteem and self-actualization needs and it is key to motivate employees as well as
to retain them for longer period. In physiological needs, organisation should ensure that
employee have shelter, food and clothes as these are basic needs. The salary should be like it can
fulfils the basic needs. Further, safety needs included, security, freedom, safety as they could
motivate employees by fulfilling the safety needs (Abraham Maslow's Hierarchy Theory of
Motivation, 2018). Social needs included love and belongingness so that employees feel
comfortable and share there emotions with subordinates. Esteem need includes dignity, respect
working in the company as if respect is not given to them, there moral is affected. On the other
hand, the most important needs and motivating factors is the desire for growth and development.
These are the motivating factors that organisation needs to fulfils for motivating employees.
Theme 3: Challenges faced by Hilton Hotel by high employees turnover.
According to the Dzhandzhugazova and et.al., (2016) employee turnover rate refers to the
number of workers leave the company and are replaced by new one. Employee turnover is one of
the biggest challenges that organisation faced as it influenced the reputation, performance of the
company. Cost of production is very first challenge that company faced as recruitment, selection,
training and development raise the cost of production which in turn decreases the profit margin
of the company. Jaworski and et.al., (2018) argued that, time is very big challenge that
organisation faced. HR managers takes time for filling the empty post which in turn decreases
the quantity of the work. On the other hand, providing training to employees is takes too much
time which is also a challenging for the company.
Theme 4: Strategies for raising the employee retention in the hospitality industry
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As per the findings of Noe and et.al., (2017) reward system is one of the best strategy for
raising the employee retentions in the hospitality industry. Effective rewards system retain
employees for long term, especially monetary benefits. Rewards must be separate from salary.
Organisations should focus on organise effective reward system within organisation. However
Yoon, Jang and Lee, (2016) said that organisation could build an attractive hospitality culture in
the organisation so that employee feel happy and enjoy working in the work. It is true that,
employee retention is increase if employees are engaged with the organisation. Lu and et.al.,
(2016) said that, employee recognition is another strategy that organisation could follow for
increasing the employee retention. As it is the desire of every individual to go beyond and above.
So company should provide development opportunities to employees.
CHAPTER 3: RESEARCH METHODOLOGIES
2.1 Match the Resources efficient to research question.
Research methodology
Research methodology is applied in research process which is used to collect
information on the research problem and then developing a hypothesis on the problem. After
developing hypothesis it finds out the main variable of the research problem that changes
because of different factors (O’Hagan and Sasamoto, 2016). After choosing the variable the plan
is implemented by choosing and implementing correct research method and then the execution of
research was right or not is find out by different test that includes T test etc. and finally the
conclusions are drawn by the researchers.
Research type
Research types are basically of two types . Every research either based on qualitative type
or quantitative type. The research which is quantitative in nature takes figures and facts into
consideration for research findings. Quantitative research includes comparative charts and
involves experiments and mostly based on statistics of attitudes, opinions and take large sample
of data for better results. This can be done through interviews, longitudinal studies, opinion polls
etc.
On the other hand qualitative research type is based on motivation and opinions and
increase understanding of the researcher. It is used to dig deep in the problem with the help of
finding trends in opinions (Grenier and Collins, 2016). To analyse the opinions qualitative
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approach is based on small data and includes interviews of small section of employees or
customers.
This research has used quantitative research type as it includes interviews of 20 employees of
Hilton hotel which helped researcher to understand the traits, personality and attitude of people
and enhances the understanding of researcher.
Research approaches
Research approach deals with data collection and their critical analysis considering their
pro and con and finally interpreting the data. Research approach deals with solving the problem
or addressing the problem. Research approaches are of two types which is implemented to solve
the problem. The inductive approach that deals with creating new data out of the given data or
information and includes logical and detailed explanation. It considers old researches with new
perspective by giving different and new perspective. It takes qualitative data as as the base of its
study.
On the contrary the the deductive approach deals with creating new hypothesis based on
that moment itself (Johnson, Gibbs Grey and Baker-Bell, 2017). It deals with current scenario
and takes quantitative data as a base of its study.
The researcher has used inductive approach as employees of Hilton has been given
questionnaires to fill on current issues and new hypothesis was formed by the researcher to find
out the impact of issues in the company.
Research design:
It is a proper framework used by researcher to combine various methods in research in
logical manner to efficiently deal with the problem. A good research design must be reliable,
valid and free form biases. The different types of research design that are used are Descriptive
research design which refers to detailed description of particular situation and based on that the
data are collected and implemented. The other is experimental design that defines cause and
effect relationship of research which define variables both dependent and independent. The other
design is co relational where researcher link two variables that are connected.
The research has used Descriptive design as it considered detailed description of case and
based on that problems are formulated ans solved.
Sampling -
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Sampling refers to the process of selecting sample fro a group of people that help in
drawing conclusion about large population. For effective sampling the population chosen needs
to be unbiased and free from external pressure (Barnham, 2015). This research has used
Probabilistic sampling in which Random Sampling technique will be used by taking 20 HR
managers of Hilton Hotel.
Data collection
Data collection is the process used to collect the information by using systematic
methods. Primary and Secondary are two methods used for data collection. The data are
collected either are primary which are fresh and never used before or secondary which are
already being used and find out by other researchers. Researcher will collect information from
both the sources. In primary, scholar prepare questionnaire and in secondary scholar use books,
journals and articles in literature review.
Data analysis
The process of collecting data, transforming it and then turn it into a model that can solve
the issue with available information. This researcher used thematic analysis as the data were
divided according to the themes and then the hypothesis were formed and results were obtained
(Greenfield and Greener, 2016).
2.2 Undertaken the proposed research investigation
There are some factors that help researcher to adhere to the scope of the research which
are as follows-
Scope: The scope of this study is very broad as it is used in both academic and corporate
sector. Students who are persuading the studies related to management of human resources will
find very beneficial from this research study. On the other hand, this research is could also be
used by the organisation for understanding the importance of employees retention.
Resources: This is another factors that help researcher in investigation is availability of
resources. The researcher has plan all the resources before starting the research like man-force,
fund, secondary sources, stationery items, storage device etc.
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Time: This present research has been completed in 9 weeks. Researcher has completed
all the activities in given time.
CHAPTER 4: Data Findings, Analysis and Discussion
2.3 Record and Collate the relevant data.
QUESTIONNAIRE
Name of Organisation:Hilton Hotel
Designation of Respondents: HR Managers
Age:
Gender:
1. Do you think employee retention is very important for the future growth and development of
the hotel?
 Yes
 No
 May be
2. Do you think your hotel have good control over employee retention rate?
 Yes
 No
 Not Sure
3. According to you, what are the benefits your hotel in enjoying by employee retention?
 Attracts talented people
 Raise the moral of employees
 Gain competitive benefits
 Others
4. Do you think reputation of the hotel in the market influenced by high retention rate?
 Highly Agree
 Agree
 Highly Disagree
 Disagree
 Neutral
5. As per your opinion, customer satisfaction is greatly influenced in hospitality industry
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through dissatisfied employees?
 Yes
 No
 May Be
6. What are the challenges your hotel faced by employee turnover?
Increase cost of production
Consume time and resources
 Affect the goodwill
 All the above
7. What strategies your hotel use for boosting the employees motivation?
 Rewards and Incentives
 Effective Working Culture
 Employee recognition
8. Recommendation if any...
Theme 1: Employee retention is very important for the future growth and development of the
hotel.
Particulars Respondents
Yes 12
No 6
May Be 2
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